Insurance is a form of risk management primarily used to hedge against the risk of a contingent loss, and may be defined as the equitable transfer of the risk of a loss, from one entity to another, in exchange for a premium. An insurer is a company that sells insurance. An insurance rate is a factor used to determine the amount, called the premium, to be charged for a certain amount of insurance coverage.
A digital asset is any form of content and/or media that have been formatted into a binary source which include the right to use it. Digital assets may be categorized in groups such as textual content, images, and multimedia. A user may spend hundreds or thousands of dollars on the purchase of digital assets. No insurance product is available that directly provides coverage for a user's digital assets. For example, if a computer memory on which the user stored their purchased digital assets were to be lost or corrupted, the user may have to contact the digital asset source(s) for replacement of the digital assets.